Aker Solutions Reports Strong Q4 Performance and Initiates Share-Buyback Program

Aker Solutions, a prominent energy-industry service provider, has announced impressive financial results for the fourth quarter, highlighting increased market activity and sustained high demand. The company reported a notable net profit of 9.87 billion Norwegian kroner ($932.8 million), supported by the recent closure of a subsea joint venture. This transaction yielded $700 million in revenue for Aker Solutions, while also securing a 20% stake in a larger subsea entity. Moreover, the company experienced a substantial revenue growth of 32%, amounting to NOK10.87 billion.

Analysts surveyed by FactSet had previously projected a net profit of NOK270 million on revenue of NOK9.46 billion, underestimating Aker Solutions' exceptional performance this quarter.

Anticipating a favorable future, Aker Solutions expects its 2024 revenue to increase by approximately 15%. Furthermore, the company predicts that its earnings before interest, tax, depreciation, and amortization margin, excluding the subsea joint venture, will significantly improve, reaching approximately 6%-7%.

Despite a slight decrease in order intake this quarter, from NOK45.2 billion to NOK14.6 billion compared to the previous year, the backlog remained steady at NOK72.7 billion. Analysts had anticipated an order intake of NOK8.32 billion with a backlog of NOK91.61 billion. Additionally, Aker Solutions concluded the year with a tender pipeline valued at NOK74 billion.

In light of these achievements, Aker Solutions has proposed a dividend increase from NOK1 in 2022 to NOK2, aiming to reward its shareholders for their continued support. Additionally, the company plans to initiate a share-buyback program in 2024, with shares worth up to NOK500 million set to be repurchased.

Aker Solutions' outstanding performance, positive outlook, and commitment to shareholder value make it a force to be reckoned with in the energy-industry service sector.